Jack Ma's Alibaba Among Money Again: its Grocery Arm Freshippo Prepares For IPO

  • Alibaba Group Holding Limited's BABA grocery chain Freshippo is preparing for a Hong Kong initial public offering.
  • Freshippo is working with banks, including China International Capital Corp Ltd CNICF and Morgan Stanley MS, to help prepare for the first-time share sale of the unit, known in Chinese as Hema, Bloomberg reports.
  • The company is still considering the size of Freshippo's IPO and its target valuation.
  • In January 2022, Freshippo weighed raising funds at a valuation of $10 billion. Since then, valuations of privately-held companies globally have fallen as stocks plunged and investors shied away from riskier assets.
  • Freshippo is among the first of several Alibaba units in the pipeline to be listed after Alibaba shared plans to split up its $250 billion business in March. 
  • Cainiao Network Technology Co, Alibaba's $20 billion logistics arm, is set for an IPO as soon as the end of 2023.
  • Freshippo offers Walmart Inc WMT Sam's Club-like supermarket experience with a dine-in restaurant and 30-minute home delivery. Its grocery brand Hema Xiansheng turned profitable in 2022.
  • Price Action: BABA shares traded lower by 1.95% at $93.63 on the last check Wednesday.
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